UAE-based CFD broker Kudo.com has obtained a Category 5 licence from the country’s Securities and Commodities Authority, issued on 9 June, to support its expansion efforts across the Gulf region. The permit allows the firm to conduct promotion and introduction activities within the Emirates but does not authorise trade execution or client fund custody onshore. Actual trading operations remain handled through Kudo Trade (Mauritius) Ltd, which holds a Financial Services Commission licence, alongside entities registered in Saint Lucia and Cyprus.
The Category 5 credential represents the most restricted tier within the UAE regulatory framework but has become a popular route for brokers seeking a Gulf presence without relocating core operations. Kudo announced the licence alongside the launch of Gulf equities trading covering UAE, Saudi Arabia, Qatar and Kuwait markets. The firm had previously secured preliminary approval and established a Dubai office earlier this year, coinciding with its rebrand from Kudotrade to Kudo.com in early June.
The move follows similar activity by multiple competitors including XM, GivTrade, Finalto, Exinity and PrimeX Capital, all of which secured Category 5 permits during recent months. The SCA has streamlined application procedures and reported an eighteen percent increase in submissions as brokers treat UAE licensing as a regional marketing credential rather than an operational base.
FXnCO Insight
A Category 5 licence functions primarily as a branding and client acquisition tool rather than a substantive regulatory upgrade, meaning due diligence on actual execution entities remains critical for clients and introducers.
Source: Finance Magnates